4th Quarter 2010 Benefits Corner

Benefits Corner: Update on 2011 Benefits Plans

by Al Horan

It's hard to believe but it's that time of year when we must each decide what type of health insurance we wish to be covered by for 2011. Open Enrollment for Chevron's Medical and Dental Plans will take place between Oct. 18-29. And Open Enrollment material and a Chevron newsletter will be mailed to you in mid-October. (Because of a vendor paper shortage the newsletter will be mailed a few days after the Open Enrollment material.)

The Plan changes for 2011 follow below:

Company Contribution: Will increase by 4 percent.

Medicare Retirees:
Retirees' Contributions: For the Chevron Medicare Plus Plan (CMPP), the Chevron Medicare Standing Plan (CMSP) and the Chevron Senior Care Plan (CSCP), the cost will increase by approximately 0.4 percent, decrease by about 7 percent and decrease by about 3 percent, respectively. For HMO Medical Plans, where applicable, their cost changes will vary by plan. For the Chevron Dental Plan the cost will increase by approximately 7 percent and for the Dental HMO Plans, where applicable, the cost will increase an average between 0 percent and 10.6 percent, depending on the plan.

Plan Coverage and Eligibility:
For the CMPP, CMSP and CSCP, the maximum lifetime benefit will become unlimited from $5 million per person; the deductibles and out-of-pocket maximums will remain unchanged; the copayments will generally remain the same; drug coverage will generally remain the same; vision coverage will be provided through VSP Vision Care (replaces EyeMed); and eligible dependents may be covered up to age 26. HMO Medical Plan changes, if any, will vary by plan. The Chevron Dental and Dental HMO coverages will remain the same.

Non-Medicare Retirees:
Retirees' Contributions: For United Healthcare Plans (UHC) Options 1, 2 and 3, on average, they will increase between 24 percent and 32 percent. For HMO Medical Plans, where applicable, the cost changes will vary by plan. For the Chevron Dental Plan the cost will increase approximately 7 percent, and for the HMO Medical Plans, where applicable, on average the cost will increase between 0 percent and 10.6, depending on the plan.

Plan Coverage and Eligibility:
For UHC Options 1, 2 and 3 the maximum lifetime benefit will become unlimited from $5 million per person; the deductibles, out-of- pocket maximums and coinsurance payments will remain unchanged; the out-of- pocket maximum for mental health and substance abuse will be combined with the UHC maximums; hearing aid coverage for children less than age 19 will be added; vision coverage will be provided through VSP Vision Care (replaces EyeMed); and eligible dependents may be coveraged up to age 26. HMO enrollees will no longer have a separate mental health/substance abuse benefit through Value Options. These benefits will now be provided solely through your HMO. HMO Medical Plan changes, if any, will vary by plan. Chevron Dental Plan and Dental HMO coverages will remain the same.

If you already are covered by an HMO, Chevron will continue to make available HMO coverage through the same providers as 2010. Other Chevron medical plan coverage will continue to be provided through UHC and Medco. Finally, Chevron non-HMO dental coverage will continue to be provided through United Concordia and vision coverage will be provided through VSP Vision Care.

Please be sure to consult your enrollment material and newsletter for further details about Chevron's plans and please visit Chevron's benefits website at http://hr2.chevron.com/retiree or telephone Chevron's Service Center at 1-888-825-5247 with your questions after Oct. 18. You will need your PIN number when accessing the website or contacting the Service Center. Also, for faster service, you should contact the Service Center outside of peak hours which are all day Monday and between 9 a.m. and 10 a.m., PT, on other days. Lastly, if you do not make any changes during the Open Enrollment, you will automatically be enrolled in the same plan you elected for calendar year 2010. Chevron will mail you a confirmation of your elections for 2011 in November.

This website is managed by the Chevron Retirees Association, which is not a subsidiary of Chevron Corporation but an independent organization of retired employees of Chevron or its predecessor companies.